The update VA loan limits have been updated a distributed by the VA. The chart below represents the maximum 100% VA loan limit by county for 2009. All other counties not listed below will remain at the conforming limit of $417,000.
Please keep in mind that it is still possible through VA to get a home loan above and beyond these current limits. However, a 25% down payment is required on the difference. For example, if a qualified veteran borrower purchases a house for $600,000 the minimum required down payment would be calculated as such:
1. $600,000 (Purchase Price) minus the $417,000 (maximum 100% limit for a normal cost area) = $183,000
2. 25% of $183,000 is $45,750, or just 7.6% of the purchase price
3. The applicable VA funding fee over the $417,000 limit would need to either be paid by the veteran borrower or seller.
VA Loan Limits for 2009 – for 100% financing
What are the benefits of a VA Jumbo loan?
1. No punitive interest rate increase under VA Jumbo loans. Unlike conventional and FHA jumbo loans that can carry up to a full 1% increase or more; this can save you thousands of dollars.
2. No monthly mortgage insurance premiums (PMI) which are required on most mortgages without a 20% down payment which will save you hundreds of dollars per year.
3. Little to no down payment required, so you can keep more money in the bank.
4. VA Jumbo loans do not require perfect credit.
